Senator Majority Leader Frederick E. Berry (D-Peabody) announced that the Massachusetts Senate has voted to increase protections available to homeowners under the Commonwealth’s Homestead protection law. The legislation passed by the Senate would increase the amount of Homestead protection available to homeowners to $500,000. Under current law, homeowners may file for Homestead protection totaling $300,000. An estate of Homestead protects the owner’s principal residence from being taken to satisfy a financial judgment against that person.
“This legislation is an important adjustment to the laws protecting homeowners in Massachusetts,” said Senator Berry. “Losing a home is one of the most devastating things that can happen to a family. By passing this legislation, the Senate is reaffirming the American dream of home ownership and also recognizing that nowadays many homes are valued at over $300,000.”
The Homestead law offers homeowners protection from creditors. Included is protection from debts and lawsuits. There are exceptions to the protection including debts incurred prior to the acquisition of homestead protection, court orders for spousal or child support, and mortgages on the property.
Senator Berry concluded his remarks, “In an age where predatory lending practices and substantial legal judgments are quite common, affording homeowners additional protection is the right thing to do. Families should be secure knowing that a creditor can’t pull the rug out from under them.”
The bill passed by the Senate is now awaiting action by the House of Representatives. The House must pass the legislation before it is sent to Governor Mitt Romney for his approval.